I don't think having the CDDB on the player is stupid. It's how the HSX-109 works, and it's quite good and functional.

The difference is that the HSX-109 has an internet connection and doesn't need monthly CDDB updates. If you put in a CD it doesn't already have in its database, it will do a quick internet connection to look up that particular CD.

Also, the HSX lets you manually enter tag data for things that don't exist in the CDDB, but I'm not sure how that other unit handles this situation.